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Stocks dropped on Monday, the first trading day of December, as investors digested disappointing economic data along with the latest trade news after capping a month that featured blistering gains.
The Dow Jones Industrials dropped 206.28 points to break for lunch at 27,845.13
The S&P 500 fell 21.56 points to 3,119.42
The NASDAQ subtracted 88.66 points to 8,576.79
Shares of Facebook, Amazon, Alphabet and Apple all dropped more than 1%. Netflix traded 2.7% lower. Roku, which has been one of the hottest stocks of 2019, plummeted more than 15%.
Monday’s losses came after a strong performance in November. The major averages had their biggest monthly gains since June, rallying to record highs. The S&P 500 climbed 3.4% last month while the Dow advanced 3.7%. The NASDAQ rallied 4.5%.
Manufacturing activity in the U.S. continued to contract last month, the Institute for Supply Management said. The ISM Manufacturing PMI dipped to 48.1 in November. That’s below an estimate of 49.4. Stocks hit their session lows after the data was released.
Chinese state media reported Sunday that Beijing wants a cancellation of tariffs for a phase one trade deal. There is no clear indication of when both countries will be able to sign an agreement and last week saw fresh tension between Washington and Beijing after President Donald Trump signed legislation supporting protesters in Hong Kong.
Trump also said Monday he will restore tariffs on metal imports from Brazil and Argentina. In a tweet, he said: "Brazil and Argentina have been presiding over a massive devaluation of their currencies, which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries."
Prices for the 10-Year U.S. Treasury plummeted, raising yields to 1.83% from Wednesday’s 1.77%. Treasury prices and yields move in opposite directions.
Oil prices increased 92 cents at $56.09 U.S. a barrel.
Gold prices dwindled $3.40 to $1,469.30 U.S. an ounce.
